Are there fixed rate reverse mortgage loans?

Answer:

There certainly
exist fixed rate reverse mortgage loans. Reverse mortgage products can be fixed
or adjustable loans, pretty much as regular mortgage loans. When you are
shopping for a reverse mortgage, you are again looking for the lowest interest
rate.

However,
even when two fixed rate reverse mortgage loans, say HECMs, have identical
interest rates and amounts and the age of the seniors taking them may be the
same as well, you can't be sure which one will come out cheaper. Lenders should
show different TALC scenarios, as per Truth-in-Lending laws, to see how much
the fixed rate reverse mortgage loan will cost to you.

Fixed rate reverse mortgages are less flexible
and rarer.

There is
one major restriction for fixed-rate reverse mortgages - the credit is advanced
in one lump sum and the borrower usually cannot schedule tenure payments. The
fixed mortgage rate has nothing to do with income and credit qualifications.

Fixed Rate HECM
Reverse Mortgage

Fixed rate
reverse home loans haven't been around long.

The
traditional HECM is an adjustable rate mortgage - credit lines and monthly
installments are the most preferred ways for seniors to receive reverse
mortgage funds.

The fixed
rate HECM reverse mortgage product is a recent development; it has similar
maturity compared to the traditional HECM:

repayment
of the loan is not required while the senior inhabits their property and taxes
and insurance are paid;

full
ownership is retained for the life of the loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.